October 2011 Verification of climate data

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October 2011 Verification of climate data

Verification of climate dataVerification of climate dataBenefits and importance of verification. Two reporting companies share

their experience Q&A with four leading verification service providerstheir experience, Q&A with four leading verification service providers

October 2011 Verification of climate data - Agenda

Today...

• Importance of verification and highlights from 2011 data: Michelle Cox, CDP

• ConAgra Foods and verification: Marcella Thompson, ConAgra Foods

• Embraer and verification: Guilherme de Almeida Freire Embraer• Embraer and verification: Guilherme de Almeida Freire, Embraer

• Q&A - Expert panel: Bureau Veritas, LRQA Lloyd's Register Quality Assurance, PricewaterhouseCoopers LLP and TÜV NORD

What is verification?October 2011 Verification at a glance

What is verification?

“Verification is defined as aThe verification or assurance process is Verification is defined as a systematic, independent and documented process for theevaluation of climate data

The verification or assurance process is undertaken by an independent third party and examines:

evaluation of climate data against a set of predefined criteria.“

1. The system or model that forms the basis of a greenhouse gas (GHG) assertion – for example set boundaries or equipment calibration;or equipment calibration;

2. The data and information included in an assertion – a factual and objective declaration made by a company.

Importance and benefits of verificationOctober 2011 Why is verification important?

Importance and benefits of verificationData quality! Meeting market demand

• Current and future regulation• Global prospective buyers • Investors

BloombergGoogle FinanceIndices – e.g. Dow Jones Sustainability Indexes

Benefits – Enhancing processes and gaining competitive advantage: • Increasing reliability, comparability, credibility and trust• Identifying risks and opportunities

g y

• Identifying risks and opportunities• Competitive advantage

Data requirementsOctober 2011 When can verification take place?

Data requirements

A general process that companies go through can be summarized in four steps:

Step 1 Collect scope 1 and scope 2 emissions data

Step 2 Monitor / measure corporate carbon footprint (i e carbon dioxide equivalentStep 2 Monitor / measure corporate carbon footprint (i.e. carbon dioxide equivalent emissions per source and categorized by scope)

Step 3 Manage / highlight areas where emissions savings can be made and the datacollection process optimized

Step 4 Reduce emissions

Use of verification standards and streamlining of the processesOctober 2011 Support for verification

Use of verification standards and streamlining of the processes

Use of standards is essential and provides consistency across delivery andUse of standards is essential and provides consistency across delivery and outcomes of verification.

Criteria to consider when choosing a standard for verification:g

Relevance

Competency Competency

Independence

Methodology

Availability

Streamlining verification:Streamlining verification: Climate reporting maturity

Carbon management solutions

Information about verificationOctober 2011 Useful information

Information about verification

Read CDP’s Verification of climate data paper available Read CDP s Verification of climate data paper available

from the CDP website

Find out about CDP’s requirements around verification and

stay update to date with developments

Give us your feedback on CDP’s verification strategy

– Open until October 31st

Visit https://www.cdproject.net/verification for CDP’s latest verification updates

Overview: which companies are getting their dataOctober 2011 Highlights from 2011 CDP data

Overview: which companies are getting their data verified?

Companies verifying Scope 1 emissions

Underway19%

Verified47%Not verified

53% Complete81%

400 Hong KongChina

Rest of World

200250300350400

com

pani

es

CanadaJapanBrazil

TaiwanIndia

Verified

050

100150

No.

of c

Not verified

Verified

UKRest of Europe

South KoreaAustralia

South AfricaVerified

Not verified

0 100 200 300 400 500 600

US

No. of companies

What verification practices are reported?October 2011 Highlights from 2011 CDP data

What verification practices are reported?Scope 2 verification standards

AA1000Scope 1 verification standards

AA100011% AT101

1% EC Directive

1%

Oth

AA100010% AT101

1%EC Directive

8%Other32%

ISAE 300025%

ISO14064-

Other40%

ISAE 300025%

ISO14064-3

32%

Utilities

ISO140643

22%

ISO14064 324%

ITMaterials

TelecommsUtilities

Industrials

IT

Materials

Telecomms

Consumer StaplesEnergy

Health CareIndustrials

Consumer Staples

Energy

Health Care

Industrials

0 50 100 150 200

BanksConsumer Disc.

p

0 50 100 150 200

Banks

Consumer Disc.

October 2011 Verification of climate data

Thank youThank you

Michelle CoxTechnical Manager

Carbon Disclosure Project

Verification@cdproject.net

Marcella ThompsonDirector Sustainabilitymarcella.thompson@conagrafoods.com

ConAgra Foods Overview

ConAgra Foods is a $12+ billion Fortune 500 company with more than 24,000 employees, with the company’s world headquarters located in Omaha, Neb.located in Omaha, Neb.

ConAgra Foods began tracking a corporate greenhouse gas i t i fi l 2008 j t l t d thi d tinventory in fiscal year 2008; just completed third‐party verification of our fiscal year 2011 inventory.

GHG Reporting & Verification Boundary

ConAgra Foods ConAgra Foods has 80

manufacturing locationslocations

40 Consumer Foods23 flour mills

15 Lamb Weston2 Spicetec2 Spicetec

Headquarter qlocations in Omaha,

Naperville, and Kennewick

GHG Inventory Profile

Verification included all Scope 1 & 2 i i Al ifi d th 1 & 2 emissions,

and Scope 3 transportation

Also verified other sustainability KPIs

ConAgra Foods GHG Data Management Journey

Compiled first GHG inventory using Excel spreadsheets

FY09

Compiled first GHG inventory using Excel spreadsheets

Internally developed an Oracle web‐based sustainable reporting application 

Submitted first response to CDP Investor QuestionnaireFY10

Announced public sustainability goals, including 20 GHG reduction target 

Completed first internal audit of GHG inventoryFY11

Submitted second response to CDP Investor Questionnaire

Began issuing quarterly sustainability progress reports to management

Completed internal audit of all sustainability metrics

Submitted third response to CDP Investor Questionnaire

Completed internal audit of all sustainability metrics

Completed external verification GHG inventory and sustainability metrics

Will submit verified data to the CDP in fourth response to Investor QuestionnaireFY12

Lessons Learned & Value in Verification

Mature data management systems  simplify auditing process.

Internal Audit prepared us for third‐party verification and allowed us to develop an accurate scope of work.

Regularly communicating sustainability KPIs to management improves data management process.

Third party verification provided an objective assessment of our data management systems and facilitates continuous improvement.

Verification enhances data‐owner accountability and engagement.

CDP WebinarVerification of Climate Data

Guilherme FreireDirector Environmental Strategies and TechnologiesDirector, Environmental Strategies and TechnologiesOctober 20th, 2011

Embraer Commitment

• 2007 – Project started – 2000 2005 e 20062007 Project started 2000, 2005 e 2006

• 2008-09 – Expending Scope III

• 2010-12 – External verification – 14.064:2006 – Part I

• 2010 Accomplished: 6 months

• 2011 Expected: 4 months

• 2012 Target: 2 months• 2012 Target: 2 months

• Improved quality of information and meeting the deadlines• Improved quality of information and meeting the deadlines for preparing the annual GHG inventory;

• Defining and implementing a GHG Emissions Management System, based on ISO14064 - part 1;

• Increased awareness across administrative and operational areas;

• Minimising the environmental impact across the organization;organization;

• Increased transparency with key stakeholders.

Thank you!

THANK YOU

Thank you!

THANK YOU

October 2011 Q&A – Verification of climate data

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October 2011 Verification of climate data

Thank you for attending:Thank you for attending:Verification of climate data

https://www.cdproject.net/verification